The Philippine Electricity Market Corporation (PEMC) recently launched the commercial implementation of the Retail Competition and Open Access (RCOA) program, with 239 early subscribers.
The RCOA allows power consumers, with an average monthly consumption of at least one megawatt can choose their own electricity suppliers, who in turn can provide tailored supply packages according to the consumer’s consumption and preferences.
The 239 contestable customers signed contracts with suppliers such as Adventenergy Inc., Aboitiz Energy Solutions Inc., TeaM (Philippines) Energy Corp., DirectPower Services Inc., San Miguel Electric Corp., Masinloc Power Partners Company Ltd. and Manila Electric Co.-Retail Electricity Supplier.
The program was greeted with enthusiasm by San Miguel Brewery, Inc. (SMBI), one of the early registrants to the program.
SMBI President Roberto Huang said the RCOA and its policy of helping lower the cost of power through healthy competition among suppliers would be another compelling reason why more visitors would put up businesses in the country
Huang added that being a contestable customer allows the company to assess its power consumption and match it with the supplier that can meet its requirements. “From a macro perspective, RCOA empowers businesses, as the latter would be able to decide for themselves which provider is in the best position to supply its needs.”
However, the 239 registrants constitute less than a third of the 909 customers earlier accredited by the Energy Regulatory Commission (ERC). PEMC hopes the rest of the accredited users will be able to secure supply offers that suit their needs by the end of the year.
It was learned that some of the remaining customers are in the process of completing documentary requirements, while some have already indicated that they will temporarily remain with their distribution utilities (DUs).
It is projected that threshold level for the program’s market would be gradually reduced until it reaches the household demand level.